Forward Contracts

Check out my other articles regarding financial derivatives. What is a forward contract? A forward contract is a non-standardized, unregulated, over the counter, customizable deal between 2 entities. It is like the Future contract as both parties honor the deal by exchanging cash or the underlying asset at price agreed Read more…

Interest rate swaps

Check out my other articles regarding financial derivatives. Interest rate swaps or Vanilla swaps are non-standardized, un-regulated, over the counter deal between 2 entities. Let’s say a corporation C has taken a loan from bank B with a floating interest rate (which is the normal case). These interest rates are Read more…

Credit Default Swap

Check out my other articles regarding financial derivatives. What is a Credit Default Swap? Credit Default Swap is a kind of insurance. An insurance that is used to reduce the risk of debts. Insurance that allows me to invest in debts or which allows me to lent loan to a Read more…

Options Contract

Make sure to check out my other article, “4 ways to invest Gold in India”.  In this article, I am going to discuss what derivatives are and how Future and Options work. So let’s dive right in.  Derivatives What do you think about when you hear the word, “derivative”? Sounds Read more…